Business Plan for Desklib: Online Library for Study Material
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This business plan discusses the marketing plan, target market, business plans, and financial plans for Desklib, an online library for study material. It includes a SWOT analysis and strategies for promotion and advertising. The financial plan is also discussed.
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Running head: BUSINESS PLAN Business Plan Name of the Student Name of the University Author note
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1BUSINESS PLAN Table of Contents Introduction:...............................................................................................................................2 Discussion..................................................................................................................................3 Background............................................................................................................................3 Company Summary................................................................................................................3 Business goals........................................................................................................................4 Target market.........................................................................................................................5 Market analysis......................................................................................................................6 SWOT analysis.......................................................................................................................6 Potential opportunity:.............................................................................................................7 Strategies and tactics..............................................................................................................9 Promotion and advertising.....................................................................................................9 Financial Plan:......................................................................................................................10 Recommendation:................................................................................................................12 Conclusion:..............................................................................................................................14
2BUSINESS PLAN Introduction: The aim of this report is to provide a detailed summary of the comparison between the business plans of two newly formed business enterprise.Blueprints Business Planning Pty Ltd andMother’s House Cleaning Services are the organisations whose business plans are to be compared in this assignment. Mother’s House Cleaning Services provides service of cleaning the houses of the customer. Mother’s House Cleaning Services targets the families withhigherincomerangewhereasBlueprintsBusinessPlanningPtyLtdprovides consultancy services and the mostly target the small-scale business enterprises. Both the organization is sole-proprietorship business model run by only one owner. In this paper, the marketing plan, target market, business plans and financial plans have been discussed. SWOT analysishasalsobeencarriedouttounderstandthepotentialstrengths,weaknesses opportunitiesandthreatsofboththeorganization.Thebusinessplanwillguidethe organization to grow in the market and to expand the business. Being a sole proprietorship business, the enterpriseshave a limited source of funding so it is necessary for the organization to make a sales forecast. In this paper, advertising and promotional strategies have also been discussed. The comparison between both the organization’s business plans will help to understand how the thinking and the marketing plans differs from one another.
3BUSINESS PLAN Discussion Background The purpose of this paper is to compare a business plan for a newly planned business organisation Mother’s House Cleaning Services with another business plan of Blueprint business planning Ltd (Blank 2013). Mother’s House Cleaning Service’s goal is to provide house-cleaning services to the consumer and the goal of Blueprint Ltd is to provide management consulting services. Both the business is a small-scale business organisation and is new in the market. The services that Blueprint Ltd will provide includes making of business plan, providing training in improving skills on small business management and the services that Mother’s House cleaning services will provide includes normal room cleaning to pest removal, which will save time of the consumers (Goombos et al. 2013). Blueprint Ltd owners plan is to begin the organisation by employing one person on full time basis and then to increase the business where the enterprise can employs more than three employees, whereas Mother’s Cleaning services aims at employing 6 employees by the end of the first year of operation. Company Summary Mother’s House Cleaning Service will soon start its business in Cleanly, WA. It will provide house-cleaning services to the customer. The business organisation will provide a wide range of service starting from normal room cleaning to pest removal. The business is targeting the upper section of the society, as they will provide a huge premium for their service. The location of the business enterprise will be Sarah Tookleen’s home. Sarah will take all the responsibility of estimates, scheduling, training of new employees, payroll, and customer care management and ordering of services. The type of the business operation will
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4BUSINESS PLAN be sole proprietor and it is expected that the business will have six employees by the end of the first year (Abdulsaleh and Worthington 2013). Blueprint’s business market is a new and small business operated by only one person. The business will provide service like developing business plans, providing training in improving skills on small business management (Margerison 2017). The business targets the small scale business enterprises to help them with creating a standard business plans and to provide training so that the small scale business managers can manage the enterprise more effectively. The company expects and aims at hiring a full time employee in the beginning and after reaching to a stable condition the business aims at hiring more than three employees. Business goals The goals or objectives ofMother’s House Cleaning Servicesfor first three years of business operation are listed below: The most important objective of the organisation is to provide service in such a way that it help the organisation in exceeding the expectation of the customer. This objective will help the business to make a reputation in the market and will help in creating goodwill in the market (Camodeca, Almici and Bernandi 2013). The second objective of the organisation is to expand the customer base by 20% each year with the help of superior quality services. To make a profitable home-based firm, so that it can be operated by its own cash plan. Utilisation of MHCS services by 30% of the customers regularly who contact them for more information. The goals or objectives ofBlueprints Business Planning Pty Ltdare listed below:
5BUSINESS PLAN To provide marketing plan to the small scale industry so that they can improve their business operations (Agwu and Emeti 2014). To earn a net profit of more than A$2000, which will help in future investments. To increase the customer market each year by 15% so that the company can expand in the market. Long-termobjectiveorgoalistodevelopareputedconsultancyservicesby employing more than four employees. Target market Mother’s House Cleaning services will target the upper-end of the market. The two main target customers of Mother’s House cleaning services will be: Affluent whose spouse does not like to work and is not inclined to make any effort to do housework. This group of customer is symbolizes by too many house cleaners. The two-income family households, who does not get any time for cleaning the house The target markets of Blueprints Business Planning Pty Ltd are: Participants or individual who are in the training courses and needs to develop managerial skills Metropolitan areas of the Central Sydney Small-scalebusinessorganisationwhoearnedsufficientrevenuestospendfor services like this Small-scale business organisation that are passing from huge competitions and bearing losses need expert consultant for their business. The target market of the MHCS is mainly focused on the upper class section of the society who will pay them a good premium for their services andBlueprints Business
6BUSINESS PLAN Planning Pty Ltd who mainly focuses on targeting the market of small-scale business enterprises. Market analysis MHCS will target the upper level of the house cleaning industry, whereasBlueprints Business Planning Pty Ltd will target the small-scale business organizations.The industry in which MHCS is operating does not have any highly recognised business competitor but Blueprints Business Planning Pty Ltd has many competitors available in the market. The industry ofBlueprints Business Planning Pty Ltd is in a high demand for consulting services. Though there are many existing firms who provides consulting services and management trainings to large corporations, which are generally expensive. The micro-enterprises or small-scale enterprises could not afford the services of existing firms. Blueprints Business Planning Pty Ltd aims at providing services to those micro-enterprises at a lower cost. SWOT analysis SWOTanalysiswillhelptounderstandthepotentialstrengths,weaknesses, opportunities and threats (Wang and Ge 2013). Both the organisation is new and they should understand about their business threats and opportunities, which will help them to grow in the market. This will help to compare the strengths of both the organisation. SWOT analysis ofMother’s House CleaningServices is shown below: Potential strengths: The organisation is new and the idea of cleaning the houses is new and innovative. In today’s busy world people hardly gets time to clean their houses due to their busy schedule. This will help the business organisation in making its customer base. MHCS is highly
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7BUSINESS PLAN focused on providing quality services to the people, which every customer wants from a organisation. Potential threats: The business is new and the enterprise is only focused on one sole proprietor. Sarah Tookleen is entitled to take every decision related to the business. This increases the chances of making wrong decision and the quality of supervision lacks in the business organisation. It is tough for one person to look at every operation in the business. This will reduce quality of services in future (Karaoguz et al 2015). Potential opportunity: There is no recognisable or reputed business enterprise in the market, this is a perfect opportunity for MHCS to become the leading Cleaning service provider in the market. This opportunity will help them in the long-run when new enterprises will try to enter into the market. Potential threats: The business is new and the brand awareness is low in the market. Customers may not be ready to spend such a hefty amount on cleaning their houses, which can cause them a huge loss in the initial years. SWOT analysis ofBlueprints Business Planning Pty Ltdis shown below: Potential strengths:
8BUSINESS PLAN Jessie Jones a management consultant, who provided mentoring services, business planning to many clients and training programs from August to June 2014 has links to New South Wales Small Business Advisory Network will help the organization to grow. Potential weaknesses: The operation of the business is totally depend on only one person, Jessie Jones which increases the chance of making mistakes in taking decisions. Plans and strategies will be ineffective and the business may suffer loss. Record of accomplishment will be minimal in case of external consultancy. Limited skill in developing tenders Potential opportunity: Managerial skills are highly needed in the corporate sector nowadays, which increases the chance of getting more customers’ in the market. Growth in the consultancy services is a good opportunity for Blueprints Business Planning Pty Ltd to expand its business. Potential threats: The consultancy service industry is full of competitors. The competitors, which are already present in the market, has good brand awareness and are recommended by most of the large corporations. Those consultancy firms will attract more of the customer towards them. Both the firms have many opportunities as well as many threats. MHCS has potential strengths as it is one of the new and innovative business ideas in the market and they can use this opportunity to establish their business before any other business organization. Blueprints
9BUSINESS PLAN Business Planning Pty Ltd also has strengths and opportunities for example the business firm have links to New South Wales Small Business Advisory Network, which will help the organization to grow. Both the business enterprises has a common weaknesses that is both the business firm is dependent on only person, who will take all the major decisions in the market this increases the risk of failure or risk of making wrong decisions. Strategies and tactics Mother’s House Cleaning services will target for the families with high incomes belonging to Cleanly, WA. The main aim of the Mother’s House Cleaning Service is to attract customers by their professionalism and trustworthy services. They will achieve the superior level of service with the help of extensive training procedure and by continuously improving the learning process. MHCS will be contacting with the potential buyers over phone calls with an estimate price and will also organise in-house interaction with the customers.Blueprints Business Planning Pty Ltd will target the small-scale industries. They will provide consultancy services to the growing business firms and small-scale business firms to increase their revenue and to improve their business operations. They will also publish books, which will have details about the business plans and business tactics, which will help the management leaders to lead more effectively. They will also provide managerial trainings to the customer to increase the managerial skills. The firm will also use the strategy of e-commerce, which will help them in growing in the competitive market. E-commerce already has helped many business organization to increase their revenue. Promotion and advertising Promotionandadvertisingisoneoftheimportantmarketingfactorsthatthe organisation should consider. Advertising helps in increasing the brand awareness and helps in making a mark in the market (Aaker and Biel 2013). With increasing brand awareness, the
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10BUSINESS PLAN revenues of the business firm will also increase. Both the organisation should highly focus on their advertising strategies. The business firms have come up with some of the advertising and promotional strategies. The promotional activities that are used by theBlueprints Business Planning Pty Ltdare: Letterheads and Business cards Direct sales mail followed by cold calling over telephones Networkingstrategy-Tieupwithotherprofessionalconsultancyfirmthrough Institute of Management consultants and many other local business enterprises. Advertising in the next edition of Yellow pages of Sydney under the banner of ‘Management Consultants’ The promotional strategies that are used by theMother’s House Cleaning Servicesare: Cold calling over telephone In-house interaction with the customer Television advertising Newspaper advertising Financial Plan: Financial planning is one of the most important and crucial aspect of any business planandbeinganewbusinessenterprisewithsoleproprietorshipboththebusiness enterprises have to highly focus on the financial plans of the organisation (Brigham et al. 2016). Being a sole proprietorship business both the enterprises have limited and small amount of budget. The advertising and promotional cost for both the organisation should be as low as it can be, so that it does not adds up any extra additional cost. The assets of the organisation are dependent on the owner of the business. The sales forecast of the business enterprise is important as it will guide the business enterprises to spend money accordingly.
11BUSINESS PLAN Sales forecast is the estimated sales that the business enterprise can earn in the given period. The estimated sales forecast for both the business enterprises are shown below. Sales forecast ofBlueprints Business Planning Pty Ltd Source:(Schaper et al. 2014)
12BUSINESS PLAN Recommendation: Mother’s House Cleaning Services andBlueprints Business Planning Pty Ltd are new in the market and they should work on their advertising strategies to create brand awareness inthemarket(Hutteretal.2013).Thenatureofthebusinessorganizationissole proprietorship so the budget is limited for both the business organization. Both the business organization has one common weakness that is lack of supervision and lack of personnel, which may not be a problem in the beginning stages but with increase in growth of both the organization it will affect both the firms in maintain the quality of their services (Palanski, Avey and Jiraporn 2014). Therefore, the organizations should hire more employees in their Sales forecast ofMother’s House Cleaning Services Sources:(Romero 2016)
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13BUSINESS PLAN organization to avoid degradation in quality. Mother’s House cleaning services is a unique startup and they should utilize this opportunity to avoid any future risk of competitiveness (Kick and Prieto 2014). They are mainly focused on providing quality services to the customer, which is a good thing for the business enterprise and it will help them in creating a good customer base in the market whereas, Blueprints Business Planning Pty Ltd aims at providing consultancy services to the small-scale organizations. With the increasing market of consultancy industry, Blueprints Business Planning Pty Ltd can use this opportunity to attract customer and create their own customer base (Lazaroiu 2015).
14BUSINESS PLAN Conclusion: Inthispaper,businessplanoftwobusinessenterpriseshavebeendiscusses. BlueprintsBusiness Planning Pty Ltd andMother’sHouse Cleaning Servicesare the organisationswhose businessplansareto be comparedinthisassignment.Both the organisation has different advertising strategy and which is adopted according to the nature of the business. Mother’s House Cleaning Services is focused on providing services of cleaning the houses whereas,Blueprints Business Planning Pty Ltd provide consultancy services. Both the organization is new and they follow the same sole proprietorship style of business. In the beginning of the organization, Blueprints Business Planning Pty Ltd aims at employing only one employee who will be responsible for all the business operation. Sarah Tookleen will operate Mother’s house cleaning Servicesand she is expecting to employ six employees by the end of first year. The operation will be carried out from Sarah Tookleen’s home. Both the business enterprise expected to earn a good amount of revenue in the market and a sales forecast has been included in this assignment.
15BUSINESS PLAN References: Aaker, D.A. and Biel, A.L., 2013.Brand equity & advertising: advertising's role in building strong brands. Psychology Press. Abdulsaleh,A.M.andWorthington,A.C.,2013.Smallandmedium-sizedenterprises financing: A review of literature.International Journal of Business and Management,8(14), p.36. Agwu, M.O. and Emeti, C.I., 2014. Issues, challenges and prospects of small and medium scale enterprises (SMEs) in Port-Harcourt City, Nigeria.European Journal of Sustainable Development,3(1), p.101. Blank, S., 2013. Why the lean start-up changes everything.Harvard business review,91(5), pp.63-72. Brigham, E.F., Ehrhardt, M.C., Nason, R.R. and Gessaroli, J., 2016.Financial Managment: Theory And Practice, Canadian Edition. Nelson Education. Camodeca, R., Almici, A. and Bernardi, M., 2013. Goodwill impairment testing under IFRS before and after the financial crisis: evidence from the UK large listed companies.Problems and perspectives in management,11(3), pp.17-23. Gombos, E., Barkács, K., Felföldi, T., Vértes, C., Makó, M., Palkó, G. and Záray, G., 2013. Removaloforganicmattersinwastewatertreatmentbyferrate(VI)- technology.Microchemical Journal,107, pp.115-120.
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16BUSINESS PLAN Hutter, K., Hautz, J., Dennhardt, S. and Füller, J., 2013. The impact of user interactions in socialmediaonbrandawarenessandpurchaseintention:thecaseofMINIon Facebook.Journal of Product & Brand Management,22(5/6), pp.342-351. Karaoguz, J., Bennett, J.D. and Seshadri, N., Broadcom Corp, 2015.Quality-of-service (QoS)-based association with a new network using background network scanning. U.S. Patent 9,031,568. Kick, T. and Prieto, E., 2014. Bank risk and competition: Evidence from regional banking markets.Review of Finance,19(3), pp.1185-1222. Lăzăroiu, G., 2015. The role of the management consultancy industry in the knowledge economy.Psychosociological Issues in Human Resource Management,3(2), pp.71-76. Margerison, C.J., 2017.Managerial Consulting Skills: A Practical Guide: A Practical Guide. Routledge. Palanski, M., Avey, J.B. and Jiraporn, N., 2014. The effects of ethical leadership and abusive supervisiononjobsearchbehaviorsintheturnoverprocess.JournalofBusiness Ethics,121(1), pp.135-146. Romero, M., 2016.Maid in the USA. Routledge. Schaper, M.T., Volery, T., Weber, P.C. and Gibson, B., 2014.Entrepreneurship and small business. Wang, Z.J. and Ge, L.L., 2013. Comparison between SWOT model and BCG matrix in competitive intelligence.Library & Information. Lanzhou,3, pp.87-93.